Vinod Kumar (Executive) 05 March 2021
The Union Budget 2021 is all about prioritizing key issues like creating more jobs, ramping up infrastructure development spending, and boosting economic growth.
Question: Does this budget bring any good news to the infrastructure sector?
Answer: Yes. In fact, the funds allocated for infrastructure development were the major highlights of Budget 2021.
Emphasizing the need to focus on local manufacturing to improve India’s Economic condition, the Finance Minister said that the government had already announced a production-linked incentive scheme for thirteen sectors.
Budget 2021 also focused on the National Infrastructure Pipeline (NIP). Since it will require major funds, the finance minister has announced to take three important steps to boost the NIP.
These steps will boost the development of the infrastructure sector and open up tremendous employment opportunities.
Will the employment opportunities increase in the real estate sector with the budget 2021 introduction?
Let me answer this after presenting some facts in front of you. The government has proposed to give two major incentives to the real estate sector in budget 2021, which are tax benefits and affordable housing for private investors such as InvITs and REITs (Infrastructure Investment Trusts and Real Estate Investment Trusts). Also, in the budget, Finance Minister Nirmala Sitharaman has allowed foreign portfolio investors to enter into debt financing of InvITs and REITs. This step will make investment more lucrative for the investors and enhance private participation and funds flow into the real estate sector.
Also, it introduced support measures like injecting funds in infrastructure development. It will therefore boost the overall capital appreciation of nearby property.
Hence, with all these development measures, employment opportunities will bloom, and the demand for young professionals in the built environment sector will be high.
Question: Can you give some data on what infrastructure development proposal the government make in this budget?
This year budget proposed to accelerate the built environment sector’s growth by allocating funds for urban and rural development. It will work as a beneficial situation because the focus is on improving the infrastructure and the construction sector, along with the overall upliftment of society. This motive is indicated by the government plans to start metro rail services in 27 cities and construct 118000 km of roads. Spending on these projects will boost the built environment sector growth while focusing on inclusive growth. Furthermore, more allocation on health care infrastructure is increased by 137%, which will ultimately fillip the built environment overall.